Does the Aplus agreement specify a time period in which Aplus must approve or disapprove a supplier?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If you desire to purchase any of the items specified in this Item 8 from a supplier that is not an Approved Supplier, you or the supplier must submit to us a written request for approval. We have sole discretion over the approval of such suppliers. At a minimum they must demonstrate the ability to meet our standards and specifications and possess adequate quality controls and capacity to supply your needs promptly and reliably. We may inspect the proposed supplier's facilities, and require that we receive samples from the proposed supplier for testing prior to granting or denying approval. We may impose a charge that does not exceed the reasonable costs of our inspection and testing. This charge may be paid by you or the proposed supplier. We may re-inspect the facilities and products of any supplier at any time, and may revoke the prior approval if we determine that the supplier does not meet the quality standard that is consistent with the favorable public image of the APLUS Program. The APLUS Agreement imposes no time period in which we are required to exercise our right of approval or disapproval. All suppliers approved by us are required to sign an agreement indemnifying us for the supplier's products, actions andservices.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, the Aplus agreement does not specify a time period in which Aplus must approve or disapprove a supplier. If an Aplus franchisee wants to purchase items from a supplier that is not already approved, the franchisee or the supplier must submit a written request for approval to Aplus. Aplus has sole discretion over the approval of suppliers.
The supplier must demonstrate the ability to meet Aplus's standards and specifications, possess adequate quality controls, and have the capacity to supply the franchisee's needs promptly and reliably. Aplus may inspect the supplier's facilities and require samples for testing before granting or denying approval. The franchisee or the proposed supplier may be responsible for covering the costs of inspection and testing. Aplus can re-inspect a supplier's facilities and products at any time and may revoke prior approval if the supplier fails to meet Aplus's quality standards.
All suppliers approved by Aplus must sign an agreement indemnifying Aplus for the supplier's products, actions, and services. The absence of a specified time period for approval or disapproval means that a franchisee could face delays in sourcing products from a new supplier, potentially impacting their ability to meet customer demand or manage costs effectively. This lack of a defined timeframe gives Aplus significant control over the supply chain and the franchisee's purchasing options.